Make your IPO bets foolproof if you want to make money

Sep 20, 2010, 08.09 AM IST

Prashant Mahesh, ET Bureau

We all know the stock market is highly unpredictable. But there are certain things you can always predict about the market. For example, there would be a large number of initial public offerings (IPOs) lined up every time the market hits multi-year highs.

This time around too, it is no different. Apart from Coal India's IPO, with an estimated size of 14,000 crore, slated to be the largest IPO in India's stock market history, there are several other small IPOs like Career Point (the first tutorial company to come up with an IPO), Va Tech Wabug (a water management company), Tirupati Inks, Eros International and Microsec Capital are queuing up to raise money from the market. According to investment bankers, several companies are likely to tap the markets in the coming months.

"The markets are looking up with renewed investor interest. In this context, many pending IPOs are showing signs of hitting capital markets," says Anup Bagchi, ED, ICICI Securities. "With the secondary markets improving, all smaller companies, whose prospectus have been approved and were waiting, will try and hit the markets before the mega Coal India IPO," says Ashok Pareek, executive director, SREI Capital Markets.